Karnataka Budget: VAT on liquor removed from April 1, cinema tickets to be cheaper

The Karnataka Budget for 2017-18 has proposed a number of measures that are bound to bring cheer to wine enthusiasts and cinema lovers.

Karnataka Chief Minister Siddaramaiah announced in the State Budget on Wednesday that value-added tax (VAT) on liquor will be removed from April 1. This includes beer, fenny, liqueur and wine.

The administrative fee of Rs 2 per litre on export and Re 1 per litre on spirit (excluding ethanol) is proposed to be withdrawn.

Riyaz Amlani, president, National Restaurant Association of India, said this was good news that Karnataka, following in the footsteps of Kolkata. “We are the highest employment generator of India. This move would mean that customers have more money, translating into more employment and revenue.”

The government also proposed capping movie ticket prices at Rs 200 at all cinema theatres, including multiplexes. This has been a long-pending public demand in Bengaluru, where ticket prices can rise up to Rs 500 each.

But bad news for luxury bike lovers. The Chief Minister announced that high-end motorbike prices will go up, with the motor vehicle tax being hiked from 12% to 18%. This will apply to all motorbikes costing above Rs 1 lakh.

Siddaramaiah also allocated Rs 100 crore for the setting up of Namma Canteens in Bengaluru, on the lines of Amma canteens introduced by late Tamil Nadu CM J Jayalalithaa. 198 such canteens will provide breakfast for Rs 5, lunch and dinner for Rs 10.